Liz Truss takes legal action against Keir Starmer for saying she ‘crashed’ UK economy

Credit: Lauren Hurley/No 10 Downing Street
CC BY-NC-ND 2.0

According to The Telegraph, a cease and desist letter sent to the sitting prime minister by lawyers acting for Ms Truss claims his statements “are defamatory and are causing continuing damage to our client’s reputation”.

Ms Truss was UK prime minister from 6 September 2022 until 25 October 2022.

During her short tenure, she unveiled a “mini-budget” including £45 billion in tax cuts funded through increased borrowing, which spooked financial markets.

She subsequently abandoned many of the proposals and sacked her chancellor, but was unable to regain the confidence of her own MPs and resigned on her 50th day in office.

In the July 2024 general election, Ms Truss was the first former prime minister to lose her seat since 1935, with her vote share in South West Norfolk plunging from 69 per cent to just 25.3 per cent.

Lawyers for Ms Truss argue that whatever the reaction of financial markets to her mini-budget, it did not lead to a fall in GDP or a rise in unemployment, so it is incorrect to say she “crashed the economy”.

The cease and desist letter highlights a report from the Institute of Economic Affairs (IEA), a prominent free-market think tank, in support of its position.

It claims Sir Keir “knew or ought to have known that those statements were false and the statements were likely to materially impact public opinion of our client whilst she was standing as the parliamentary candidate for the Conservative Party in South West Norfolk”.

“We sincerely hope that this matter can now be resolved and that you will refrain from causing any further damage to our client,” it concludes.